Buyers' Guide

It has been a long recession but independent completion and refurbishment centers are starting a slow return to profitability. Some semblance of a backlog suggests that the recovery, if not rapid, will at least continue.

As soon as the first owner departs from the manufacturer’s delivery center, a new airplane technically becomes used (or preowned). For various reasons, however, 10 years after an aircraft’s final production date is generally considered the milestone separating “newer” used business aircraft from “older” ones.

The relationship between the private jet operator and the fixed-base operation (FBO) is symbiotic, as neither could exist without the other. FBOs provide aircraft fueling, cleaning and watering; storage hangars and parking tie-downs; catering; meeting spaces; and, in some cases, maintenance.

Five years ago, a Falcon 900 with 15 people aboard was taking off from Santa Barbara, Calif. When the aircraft failed to climb, the pilots aborted the takeoff but the Falcon struck a berm at the end of the runway, collapsing the nose landing gear rearward. The pilots did manage to stop the jet and avoid what could have been a catastrophic loss.

The business jet finance market is changing, just like the rest of the world economy. It’s becoming more highly regulated, more conservative and more international. Its biggest challenge is the surfeit of cash that many aircraft buyers have on hand with no compelling place to invest.

Largely because of the recession, the past few years have not been kind to the fractional-jet-share business. Many customers have opted for other forms of lift after having been disappointed by the residual valuations they received for shares when their contracts ended. Others have simply decided that this is no time to tie up a large sum in a capital purchase.

Our fourth annual Buyers' Guide has arrived. We've packed its pages with everything you need to know to be a smart business aviation consumer in this slow-to-recover economy, including the latest information on new aircraft models, financing, insurance, catering, completions, cabin electronics, FBOs and more.

Industry insiders and analysts believe the business and private jet industry will witness a resurgence in 2011 as a global economic recovery continues. Of course, if you toss into the mix more political unrest in the Middle East, the rising price of oil and European Union member nation bailouts, things could get a bit dicey.

Although the rate of growth of the business aircraft ­manufacturing industry has slowed, it continues to generate billions in economic output each year and supports tens of thousands of jobs. Here are the key facts about each of the major aircraft manufacturers:

Pages

Quote/Unquote

“"I've got a list of corporations that have gotten out of their airplanes [because of criticism from politicians]. It is the stupidest thing I've ever seen. When you look at the time and cost savings; it does not make sense not to fly [privately]. You can't let public perception interfere with your business decision to fly. It either is a good business decision or it isn't."”